Dividend strategies are growing in popularity because of many factors in the macro environment: sluggish economic growth, increased volatility, heightened risk aversion and extremely low interest rates on fixed income securities. Many dividend oriented stocks may offer a higher current yield than many fixed income securities.
The strategy not only focuses on companies with higher dividend yields, but companies with potential to grow these dividends over time. Dividend strategies may prove to be less volatile during bear markets yet still may provide attractive inflation protection and real total returns in bull markets. The dividend strategy can play a key role in fulfilling your growth or income needs, depending on the allocation of assets.
Here are companies that have increased their dividend payouts for several consecutive years.
Vale SA (ADR) (NYSE:VALE) traded 29,544,945 shares on last trading session with closing price of $8.95.
VALE was trading -20.94% below its 52-week high and 141.71% above its 52-week low. Its last 5-Year EPS growth stands at -4.90%; with earnings growth of 117.60% yoy. The stock stands -5.97% below the average-price of 50 days and 1.04% compared with the SMA 20.
The stock has a 1-year performance up 82.83% and a positive weekly performance at 7.94%. Moreover, the stock is down -0.53% in one month through last close, to $8.95, showing a -14.03% return during the past three months. The company is set at a mean analysts’ recommendation of 2.60.
VALE has been paying dividends since 2002 and has raised their dividend for 0 consecutive years. It has a dividend yield of 2.10% and a 5 year dividend growth rate of -25.91%. Their payout ratio is 613.00%.
Goldcorp Inc. (USA) (NYSE:GG) shares moved to $14.36 after opening the day at $14.61, on Tuesday. The stock floated in a price range of $14.10 to $14.65, with market capitalization of $11.99B. The stock exchanged hands with 14,114,600 shares higher as compared to its average daily volume of 8.34M shares. If we take a look on its volatility, 2.72 percent was seen in a week and for the month it was 2.63 percent.
The company’s net profit margin stands at 4.60% whereas its return on equity (ROE) is 1.20%. It has 853.81M of outstanding shares and its shares float measured at 848.73M. The average analysts gave this company a mean recommendation of 2.50.
GG first paid dividend in 2001 and has increased their dividend for 0 straight years. They have a dividend yield of 0.50% and a 5 year dividend growth rate of 30.18%.